eCommerce is appealing to a lot of prospective entrepreneurs as running an online business generally involves less capital expenditure than running brick and mortar shops.
There are a lot of eCommerce business models that are applicable to the majority of sectors. This means there are many opportunities for entrepreneurs who are just starting out to begin their journey.
If you’re looking to launch an eCommerce business that you own, it’s recommended to decide which method will be most effective to reach your audience.
5 main eCommerce business categories
Before we can get into the various eCommerce businesses, it is crucial to be aware of the different business model classifications that are based on the audience that is targeted.
In this case, for instance, your business will be structured differently when you’re targeting other businesses instead of marketing to consumers.
Let’s take a look at the four most well-known business types.
B2B stands for Business-to-Business. Business to business is an enterprise model that involves transactions between two firms. The transaction could be involving either a product or a service.
Wholesaling is a fantastic illustration of a business that is B2B. However, they aren’t the only B2B business.
Companies that offer office supplies and office furniture and other items needed to run a business are employing this model.
The business-to-consumer (B2C) is when companies sell their products to consumers. This B2C model is employed for traditional stores and is also used by a lot of online retailers too.
Nearly every store you visit as a consumer is a B2C-based business.
Think of online food stores, shoe stores drug stores, clothing stores, and other websites you visit regularly. They are all B2C companies.
C2C, also known as Consumer to Customer (C2C) is an eCommerce method in which consumers are purchasing and selling products from each other.
Sellers and buyers are able to switch roles at any moment in C2C eCommerce since it’s basically multiple consumers buying off each other.
It was the case that C2C transactions usually took place during flea markets or garage sales. There is an increase in the digitalization of C2C transactions in the past few years.
Consumer to Business (C2B) C2B is one kind of model that’s different from the other models we’ve talked about.
C2B transactions happen when consumers have something valuable to offer to businesses.
A good example could be a company offering incentives to those who test their products.
Another instance of a C2B transaction is when companies pay for consumers to take part in focus groups or trials.
Influencers operate on influencers who work under a C2B commercial model. Companies pay individuals to promote their brands to their customers.
5. Business models that are related to government
There are other kinds of business categories that are not as pertinent to eCommerce, but they’re worthy of mention when you notice the acronyms popping up.
- B2A: Business-to-administration
- C2A: Consumer-to-administration
- G2B: Government-to-business
- G2C: Government-to-consumer
B2A and C2A refer to businesses or consumers offering something of value to the public administrations or government institutions.
G2B and G2C are a reference to a government agency that provides an item of value to consumers or businesses.
Recommended Guide: Amazon advertising campaign guide.